(Energy Analytics Institute, Aaron Simonsky, 16.Jun.2019) — An agreement signed between Bolivia and Paraguay, to carry out a study aimed at building a binational gas pipeline, is important and the volume exported doesn’t determine the profitability of a business, Bolivia’s Information Agency (ABI) reported, citing Bolivia’s Hydrocarbons and Energy Chamber (CBHE) President Claudia Cronembold.
Her statements came in response to doubts raised by Bolivia’s former Hydrocarbons Minister Álvaro Ríos, who considered Paraguay a very small market for high expectations.
“To give an example, when the price of gas was at its highest value in 2013-2014, Brazil, due to the size of its market and its accesses, paid Bolivia around $11/MMbtu, while LNG shipments were between $13/MMbtu and $15/Mmbtu,” said Cronembold. “Paraguay at the same time paid over $30/MMbtu precisely because of the size of its market,” she added.
© Energy Analytics Institute (EAI)